Privatisation and off shoring scam at Shared Services costing jobs

To:	Branch Secretaries in Efra, BIS and the DWP Groups (Please bring this briefing to the urgent attention of all your members working in HR, finance and procurement transactional processing services/shared services) All Other Branch Secretaries (For Information)
25 September 2013		BB/03/13(R)

YOUR JOB IS UNDER THREAT – REDUNDANCIES, OFF-SHORING AND SITE CLOSURES CONFIRMED SHOULD SHARED SERVICE TRANSFER

GO AHEAD

Following months of uncertainty and a vacuum of information from the Cabinet Office, we now know for certain that should the shared service transfer go ahead, significant numbers of staff will be made redundant, work will be privatised, functions will be off-shored and sites will be closed.

You will know by now that the Government plans to move key support services – encompassing transactional HR, Finance and Procurement functions – into a small number of shared service centres. 

Shared Services for DWP, Defra, the Environment Agency and, at a later date, UK Shared Business Services (BIS) are to be located in Independent Shared Services 2 (ISSC2).  Although there is little doubt that this work could continue to be delivered just as efficiently and just as effectively inside the Public Sector the Government seems determined that it will be delivered by a Joint Venture (JV) with a private company.  

Preferred Bidder

The cabinet office has briefed staff and notified the Unions that Steria UK is the Governments  preferred bidder for the Joint Venture privatisation of Shared Services.

Steria UK - a French based multinational - is likely to have the 75% share of the new JV, which will be called Shared Services Connected Ltd (SSC Ltd).   

This will give Steria what is called a “Special Majority”. This means that Steria can essentially do what it pleases with the company.  The Cabinet Office has also confirmed that the Government’s stake and interest will last for only 5 to 7 years. After that they do not guarantee further involvement.

PCS has met Steria executives and is due to begin a series of meetings over the next few weeks and months to ensure the best possible protections for members should any transfer go ahead.

However, we continue to have serious concerns about these proposals.

We are not persuaded that any of these services need to be in the private sector.  The whole programme is driven by Government dictat and in the name of efficiency and cuts.  It is clear already that if these proposals go ahead that:

• There will be significant job losses and site closures.

• There will be off-shoring of functions putting even more jobs at risk.

• Members will lose their Civil Service status and be transferred into the private sector.
• This is about achieving the Governments cuts targets. 

• SSC Ltd will be a “stand alone” company.  It is not a part of Steria UK.  If it fails, Steria as an entity will not carry the can, only Steria as a shareholder in SSC Ltd.

• The government is only committed to being a minority shareholder for 5-7 years.

Government must delay transfer date

The current proposal is to transfer staff and for SSC Ltd to go live “in the Autumn”.  PCS is vociferously opposing this.  If the Cabinet Office is serious about meaningful talks then the timetable has to reflect this.  Autumn transfers will not allow for those talks and therefore how PCS responds now is vital.

Steria have admitted that Off-Shoring forms an element of their plans, and that some “non customer facing work” will be off-shored.  They have not clarified what this means, or the impact on jobs. 

Steria have also confirmed that job losses and redeployment will occur anyway, even without off-shoring, as part of “estates consolidation and relocation of functions”.

PCS is demanding:

• No privatisation

• No loss of civil service status

• No off-shoring of functions or jobs

• No job losses and office closures

• A halt to the process to allow for meaningful talks to take place

What we have done:

We have met the Cabinet Office lead team for ISSC2 many times and have consistently pushed to see the original Business case, which until recently was refused us.   We have argued that shared services should remain in the civil service and have put forward options for a public sector model. 

We have raised our concerns with Sir Bob Kerslake, Head of the Civil Service, and sought assurances that there would be no loss of civil service status for staff affected and no off-shoring of functions currently delivered by those staff.  We have also confirmed that we have written separately to

the Permanent Secretaries of DWP,  Defra and the Chief Executive of UK SBS Ltd to confirm that failure to provide those assurances will establish a trade dispute.

What we are doing:

We continue to meet Steria and the Cabinet Office.  We have made it clear that we wish your jobs to remain in the public sector, and given that the government has a 25% stake in SSC Ltd we see no reason why that could not happen (you would be employees of SSC Ltd, not of Steria). 

While we are pressing for a pause and reconsideration, we are also looking for firm guarantees on TUPE, pensions and collective agreements on terms and conditions in case the transfer to SSC ltd does go ahead. 

We are alerting our Parliamentary Group, MPs and the media.

What you can do: We want your views and support.  Everything you do now is key: Please attend your members meeting and advise others to do so.  Get more involved in your branch and contact your Group and Branch reps. Ask your HR departments what arrangements are being made to ensure that should a transfer go ahead, it is fully compliant with TUPE regulations.  Make clear that you wish to remain a civil servant, and that you support PCS’s arguments that SSC Ltd remain in the public sector.   Urge non union colleagues to join PCS if they wish to defend their jobs and their terms and conditions :   https://www.join.pcs.org.uk/en/join-pcs/join-welcome.cfmSign the section and get all your friends, family and colleagues to sign it :  http://action.pcs.org.uk/page/speakout/save-our-shared-services Send a delegation from your office to meet your local MP – they will not relish the fact that constituencies are going to lose further jobs, particularly in areas where the economic crisis has hit the hardest. Talk to the local media (contact John Medhurst – johnme@pcs.org.uk for a copy of the ISSC2 – Steria UK: PCS Speakers Brief) your friends, family and colleagues to sign it :  http://action.pcs.org.uk/page/speakout/save-our-shared-services Send a delegation from your office to meet your local MP – they will not relish the fact that constituencies are going to lose further jobs, particularly in areas where the economic crisis has hit the hardest. Talk to the local media (contact John Medhurst – johnme@pcs.org.uk for a copy of the ISSC2 – Steria UK: PCS Speakers Brief)

Chris Bough
Assistant general Secretary
Marion Lloyd
NEC